Starting a Small Business...Should You Do It?

There are many factors to think about before starting your own business. While there are many reasons to start your own business, there may also be many reasons not to. It is important to think about both the pros and cons before starting any small business venture.

Why starting your own business is a great Idea.

1. You're the boss

a. You're in control, directing your business your way.

b. You can generate your own working surroundings.

c. You can operate the business the way you want.

2. You have more freedom

a. You set the hours you work.

b. You can decide where you work, in many cases, anywhere in the world. There is much more freedom to live wherever you want.

c. You can balance your work and personal time more easily.

d. You can hire employees to free up your time more.

3. Creative Freedom

a. You can contribute and be as creative as you want.

b. You have the chance to do something you have a passion for than spend most of your waking hours performing tasks you have little or no actual interest in.

4. No Limits

a. There is no salary cap. Your earnings are limited only by the success of your business.

b. You also benefit directly from your success. You reap the financial rewards of your own hard work.

c. There are no limits on your success. You can advance more quickly than you would in a traditional office setting. You won't be limited by what your boss thinks. You won't be held back because you lack experience or seniority. You will succeed or fail by yourself merits.

5. Owning your own business can be less stressful than working for others.

6. Owning a successful business gives you a higher status.

Things to think about before starting a business

1. You're the Boss

a. Increased responsibility

b. If there's a problem, it falls in your lap. There is no one else to solve the problem, and no one to point the finger at and blame. You have to take responsibility for failures as well as successes.

c. The pressure to perform is high. Your business relies on it.

d. At times it may be hard to get motivated.

2. Financial and Time Issues

a. Usually a substantial investment of time and money is required to get a business started.

b. There won't be a steady paycheck. There may be extended periods of time where you make nothing or very little income, especially in the beginning.

c. You don't get paid directly for the extra hours you may have to put in.

d. You might have to work longer days if there is an important matter to attend to. If there is a problem you must take care of it, even if you have already put in your eight hours for the day or forty hours for the week.

3. There are no guarantees that your business will succeed.

4. Insurance and Retirement Benefits

a. You will have no insurance benefits provided by your employer. It will be up to you to find health insurance coverage for you and your family. This can be quite expensive.

b. You will also have to decide whether or not to provide insurance for any employees.

c. You will have to provide your own retirement savings such as 401k. Will you provide those options for your employees?